LAW AND ECONOMICS IN NORWAY
Professor of Economics, Faculty of Law, University of Oslo
© Copyright 1998 Ehrling Eide
The growing interest in law-and-economics among academic lawyers is demonstrated by the fact that the subject now has become compulsory for law students at the Faculty of Law in Oslo. A number of Ph.d. theses at the same faculty are wholly or partially of a law-and-economics character. Economists have contributed on various issues within economics of crime, product liability, constitutional law, environmental law, and industrial organization.
JEL classification: K00
Keywords: Norway, Education, Research, Law and Economics
Although economic analysis occasionally has appeared in the traditional Norwegian law literature, it was not until Trine-Lise Wilhelmsen's study on 'Egenrisiko i skadeforsikring' [Retained Risk in Casualty Insurance] in 1989 that such analysis became part of a major work by an academic lawyer. Since then, Anders C. Stray Ryssdal has written a two volume dissertation, one on Legal Realism and Economics as Behaviour: A Scandinavian Look at Economic Analysis of Law , and the other on Economic Analysis of Civil Suits and Appeals. Another major contribution is Avtalelovens ¤ 36 og økonomisk effektivitet [Section 36 of the Nordic Contract Acts and Economic Efficiency] by Trine-Lise Wilhelmsen. Economic theory also plays an important role in three Ph.d dissertations that are about to be completed at the University of Oslo, one on antitrust law and two on environmental law.
Apart from the questions of monopolies, competition etc. analyzed in the old law-and-economics literature, economists have only recently entered the more modern field of law-and-economics. Prevalent topics studied are regulation, product liability, crime, environmental law and industrial organization. Alf E. Risa has in several papers analyzed health and safety, in particular product liability, Risa (1994) . Constitutional issues are analyzed by Hylland (1984) . A number of contributions to the economics of crime literature started with Allingham and Sandmo (1972) and Sandmo (1981) on tax evasion, followed by i.a. Isachsen and Strøm (1980) on the underground economy, Andvig and Moene (1990) on corruption, Andvig (1995) on organized crime, and Eide (1994a) on criminal behavior in general. An eleven-year program (1991-2001) on economic crime by the Research Council of Norway had by the end of 1997 produced 42 reports, mostly on tax evasion, bankruptcy, and economic crime in financial markets. Some of these reports, in particular Knivsflå (1993) and Langli (1994) , are more of a law-and-economics type than others.
A manifestation of the growing interest in law-and-economics was the invitation to a group of academic lawyers and economists to spend a year at the Centre for Advanced Study at The Norwegian Academy of Science and Letters in 1994-95. Five scholars spent most of the year in Oslo, whereas several others were invited for shorter periods, some attending a conference on the Law and Economics of the Environment. A conference volume edited by Roger van den Bergh and Erling Eide was published.
In connection with a major reorganization of the study of law at the University of Oslo law-and-economics has been substituted for the traditional introductory course in micro and macro economics. A compulsory course in law-and-economics for public law must be taken in the second year, and the students may also choose to take a more extensive course (one quarter of a year's work) at the end of the study. At other institutions no courses in law-and-economics are offered, except courses for economists where industrial organization and regulation are main topics.
Two textbooks have been published by Erling Eide. One on Kriminaløkonomi [Economics of Crime] has been written for a course in economics, whereas one on Rettsøkonomi for offentlig rett [Law-and-Economics for Public Law] has been written for a compulsory course at the Faculty of Law in Oslo.
Allingham, M. and A. Sandmo (1972) , 'Income Tax Evasion: A Theoretical Analysis', 1 Journal of Public Economics , 323-338.
Andvig, Jens C. (1989) , 'Korrupsjon i Utviklingsland [Corruption in Developing Countries]', 23 Nordisk Tidsskrift for Politisk Ekonomi , 51-70.
Andvig, Jens C. (1995) , 'Corruption in the North Sea Oil Industry: Issues and Assessment', 23 Crime, Law and Social Change , 289-313.
Andvig, Jens C. and Karl Ove Moene (1990) , 'How Corruption may Corrupt', 13 Journal of Economic Behavior and Organization , 63-76.
Eide, Erling (1981), 'Kritikk av noen forutsetninger i Kriminalmeldingen (Critique of some assumptions in the Report on Crime)', Lov og Rett , 312-323.
Eide, Erling (1981), 'Book review of Lars Werin,1979, Ekonomi och Rettssystem', Tidsskrift for Rettsvitenskap , 752-754.
Eide, Erling (1981), 'Heineke, J. M. (Ed.), Economic Models of criminal behaviour (Book Review)', Economic Journal , 584-585.
Eide, Erling (1982), 'Kapitaliseringsrente ved Personskadeerstatning. Kritikk av en Dom i Høyesterett (Capitalization Interest Rates in Personal Injury C)', Lov og Rett , 30-42.
Eide, Erling (1982), 'Kapitaliseringsrente ved personskadeerstatning: Kritikk av en dom i Høyesterett (The discount rate for compensatory damages: Critique of a High Court decision)', 1 Lov og Rett , 29-42.
Eide, Erling (1983) , 'Realbeskatning og nominalismen i norsk rett (Real tax rates and nominalism in Norwegian law)', 6 Sosialøkonomen , 5-10.
Eide, Erling (1984), 'Book review of Göran Skogh, 1982, Marknadens villkor', Tidsskrift for Rettsvitenskap , 318-319.
Eide, Erling (1984), 'Renter og Verdisikring av Pengekrav (Interest Rates and Security against Inflation in Monetary Claims)', 97 Tidsskrift for Rettsvitenskap , 477-533.
Eide, Erling (1986) , 'Book review of Nils Nygaard, 1985, Skatt og skade', Tidsskrift for Rettsvitenskap , 708-712.
Eide, Erling (1987) , 'Ekspropriasjonserstatning i en Inflasjonstid: Valg av Kapitaliseringsrente (Compensation for Expropriation in Inflationary Tim)', Lov og Rett , 165-177.
Eide, Erling (1992) , 'Rettsøkonomi - en introduksjon (Law and Economics - an introduction)', 4 Jussens Venner , 193-224.
Eide, Erling (1994a) , Kriminaløkonomi (Economics of crime) , Stavanger, Rogaland Mediesenter.
Eide, Erling (1994b) , Economics of Crime: Deterrence and the Rational Offender , Amsterdam, North-Holland.
Eide, Erling (1995), 'Valg av investeringsobjekt for erstatningsbeløp (Choice of type of investment for compensatory damages)', 1 Lov og Rett , 58-64.
Eide, Erling (1995), 'Kapitaliseringsrenten - ny episode (The discount rate - new episode)', 5-6 Lov og Rett , 351-358.
Eide, Erling (1997, 2. utg.) , Rettsøkonomi for offentlig rett , Grafisk Hus, Bergen.
Heyerdahl, H. Cristopher (1991) , En Økonomisk Analyse av de Ulovfestede Ansvarsreglene i Erstatningsretten, for Risikonøytrale Aktører (An Economic Analysis of Common Law Liability Rules in Tort Law for Risk-Neutral Agents) .
Hylland, Aanund (1984) , 'Bør politikerne binde sin egen handlefrihet? - Om grunnlovfestet budsjettbalanse, oljefond og politisk hestehandel. [Should politicians restrict their freedom of action?]', Bergen Bank Kvartalsskrift , 87-101.
Isachsen, Jon Arne and Steinar Strøm (1980) , 'The hidden economy: The labour market and tax evasion', 82 Scandinavian Journal of Economics , 305-311.
Isachsen, Arne Jon and Strøm, Steinar (1981) , Skattefritt. Svart Sektor i Vekst (Taxfree. The Growth of the Black Sector) , Oslo, Universitetsforlaget.
Knivsflå, Kjell Henry (1993) , 'Illegal Insider Trading and the Stock Market Reaction', 10 The Reseach Council of Norway , Research on Economic Crime.
Langli, Christian (1994) , 'Konkurskriminalitet: En empirisk analyse av aksjeselskaper som har gått konkurs' [Bankruptcy crime: An empirical analysis of corporations that have gone bankrupt], 17 The Reseach Council of Norway , Research on Economic Crime.
Risa, Alf Erling (1994) , 'Preference Revelation in Strict Liability Product Safety Markets', 14 International Review of Law and Economics , 41-52.
Ryssdal, Stray A.C. (1993) , 'Antitrust Enforcement - An Inquiry into Policy Analysis of Competition Law', Working Paper, 89 Centre for Research in Economics & Business Administration , Bergen.
Ryssdal, Anders C. Stray (1995), An Economic Analysis of Civil Suits and Appeals , Oslo, Juridisk Forlag.
Ryssdal, Anders C. Stray (1995), Legal Realism and Economics as Behaviour: A Scandinavian Look at Economic Analysis of Law , Oslo, Juridisk Forlag.
Ryssdal, Stray A.C. (1996) , 'Towards a Nordic Competition Law?', Tidsskrift for Rettsvitenskap .
Sandmo, Agnar (1981) , 'Income Tax Evasion. Labour Supply, and the Equity-efficiency tradeoff', 16 Journal of Public Economics .
Stavang, Endre (1992) , Verdiskapningshensyn og juridisk argumentasjon: Sþrlig om kompensasjon for lokale miljøskader [The Relation between Efficiency Analysis and Legal Reasoning, with Special Reference to Local Pollution Damage] , Stensilserie Nr. 139, Institutt for privatrett, Universitetet i Oslo.
Stavang, Endre (1996), 'Tolerance Limits and Temporal Priority in Environmental Civil Liability', Working Paper, 4 Law and Economics , Institutt for privatrett, Universitetet i Oslo.
Stavang, Endre (1996), 'Legal Economics: How Cautious Should Lawyers Be?', Working Paper, 3 Law and Economics , Institutt for privatrett, Universitetet i Oslo.
Wilhelmsen, Trine-Lise (1989) , Egenrisiko i Skadeforsikring (Retained Risk in Casualty Insurance) , Sjørettsfondet, Grafisk Hus, Bergen.
Wilhelmsen, Trine-Lise (1995) , '?Avtalelovens ? 36 og økonomisk effektivitet? [Section 36 of the Nordic Contract Acts and economic efficieny]', 1 Tidsskrift for Rettsvitenskap , 1-246.
Copyright 1996-98 Ehrling Eide